CELESTICA INC (CLS.CA) Stock Fundamental Analysis
TSX:CLS - CA15101Q2071 - Common Stock
292.32 CAD
+16.13 (+5.84%)
Taking everything into account, CLS scores 7 out of 10 in our fundamental rating. CLS was compared to 14 industry peers in the Electronic Equipment, Instruments & Components industry. CLS scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CLS is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make CLS a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
CLS had positive earnings in the past year.
In the past year CLS had a positive cash flow from operations.
Each year in the past 5 years CLS has been profitable.
Each year in the past 5 years CLS had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.63%, CLS belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
CLS has a Return On Equity of 30.63%. This is amongst the best in the industry. CLS outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 19.07%, CLS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CLS is above the industry average of 8.98%.
The 3 year average ROIC (11.43%) for CLS is below the current ROIC(19.07%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 30.63% | ||
| ROIC | 19.07% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
CLS has a better Profit Margin (5.09%) than 71.43% of its industry peers.
In the last couple of years the Profit Margin of CLS has grown nicely.
With a decent Operating Margin value of 6.56%, CLS is doing good in the industry, outperforming 78.57% of the companies in the same industry.
CLS's Operating Margin has improved in the last couple of years.
CLS's Gross Margin of 11.36% is on the low side compared to the rest of the industry. CLS is outperformed by 85.71% of its industry peers.
In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.56% | ||
| PM (TTM) | 5.09% | ||
| GM | 11.36% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CLS is creating value.
Compared to 1 year ago, CLS has less shares outstanding
Compared to 5 years ago, CLS has less shares outstanding
The debt/assets ratio for CLS is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.40 indicates that CLS is not in any danger for bankruptcy at the moment.
CLS has a Altman-Z score (5.40) which is in line with its industry peers.
CLS has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as CLS would need 2.27 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.27, CLS belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that CLS is not too dependend on debt financing.
CLS has a worse Debt to Equity ratio (0.48) than 71.43% of its industry peers.
Even though the debt/equity ratio score it not favorable for CLS, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 5.4 |
ROIC/WACC2.21
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.44 indicates that CLS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.44, CLS is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.86 indicates that CLS may have some problems paying its short term obligations.
CLS has a Quick ratio of 0.86. This is in the lower half of the industry: CLS underperforms 64.29% of its industry peers.
The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.86 |
3. Growth
3.1 Past
CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.06%, which is quite impressive.
Measured over the past years, CLS shows a very strong growth in Earnings Per Share. The EPS has been growing by 48.11% on average per year.
The Revenue has grown by 20.52% in the past year. This is a very strong growth!
CLS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.38% yearly.
EPS 1Y (TTM)49.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%52.75%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%20.97%
3.2 Future
CLS is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.31% yearly.
The Revenue is expected to grow by 18.86% on average over the next years. This is quite good.
EPS Next Y41.57%
EPS Next 2Y29.94%
EPS Next 3Y26.3%
EPS Next 5Y30.31%
Revenue Next Year19.48%
Revenue Next 2Y18.29%
Revenue Next 3Y18.02%
Revenue Next 5Y18.86%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 44.77, CLS can be considered very expensive at the moment.
78.57% of the companies in the same industry are more expensive than CLS, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.84, CLS is valued quite expensively.
The Price/Forward Earnings ratio is 32.04, which means the current valuation is very expensive for CLS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CLS indicates a rather cheap valuation: CLS is cheaper than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.48, CLS is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.77 | ||
| Fwd PE | 32.04 |
4.2 Price Multiples
CLS's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CLS is cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CLS is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 63.17 | ||
| EV/EBITDA | 27.54 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
CLS's earnings are expected to grow with 26.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)0.93
EPS Next 2Y29.94%
EPS Next 3Y26.3%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:CLS (9/3/2025, 7:00:00 PM)
292.32
+16.13 (+5.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners76.87%
Inst Owner ChangeN/A
Ins Owners0.53%
Ins Owner ChangeN/A
Market Cap33.63B
Analysts82.67
Price Target224.6 (-23.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.18%
Min EPS beat(2)6.65%
Max EPS beat(2)11.71%
EPS beat(4)4
Avg EPS beat(4)7.71%
Min EPS beat(4)1.95%
Max EPS beat(4)11.71%
EPS beat(8)8
Avg EPS beat(8)9.8%
EPS beat(12)12
Avg EPS beat(12)9.35%
EPS beat(16)16
Avg EPS beat(16)9.16%
Revenue beat(2)2
Avg Revenue beat(2)4.95%
Min Revenue beat(2)2.5%
Max Revenue beat(2)7.4%
Revenue beat(4)3
Avg Revenue beat(4)2.89%
Min Revenue beat(4)-0.75%
Max Revenue beat(4)7.4%
Revenue beat(8)7
Avg Revenue beat(8)3.06%
Revenue beat(12)11
Avg Revenue beat(12)3.55%
Revenue beat(16)13
Avg Revenue beat(16)2.92%
PT rev (1m)56.84%
PT rev (3m)71.36%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)16.45%
EPS NY rev (1m)14.43%
EPS NY rev (3m)14.43%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)7.86%
Revenue NY rev (1m)5.06%
Revenue NY rev (3m)5.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.77 | ||
| Fwd PE | 32.04 | ||
| P/S | 2.3 | ||
| P/FCF | 63.17 | ||
| P/OCF | 44.43 | ||
| P/B | 13.87 | ||
| P/tB | 21.58 | ||
| EV/EBITDA | 27.54 |
EPS(TTM)6.53
EY2.23%
EPS(NY)9.12
Fwd EY3.12%
FCF(TTM)4.63
FCFY1.58%
OCF(TTM)6.58
OCFY2.25%
SpS126.89
BVpS21.07
TBVpS13.55
PEG (NY)1.08
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.63% | ||
| ROE | 30.63% | ||
| ROCE | 23.8% | ||
| ROIC | 19.07% | ||
| ROICexc | 21.37% | ||
| ROICexgc | 28.15% | ||
| OM | 6.56% | ||
| PM (TTM) | 5.09% | ||
| GM | 11.36% | ||
| FCFM | 3.65% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
ROICexc(3y)13.32%
ROICexc(5y)10.55%
ROICexgc(3y)18.44%
ROICexgc(5y)14.81%
ROCE(3y)14.26%
ROCE(5y)11.14%
ROICexcg growth 3Y31.4%
ROICexcg growth 5Y28.76%
ROICexc growth 3Y37.65%
ROICexc growth 5Y29.81%
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
F-Score7
Asset Turnover1.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | 100.49% | ||
| Cap/Sales | 1.54% | ||
| Interest Coverage | 17.29 | ||
| Cash Conversion | 64.05% | ||
| Profit Quality | 71.71% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 0.86 | ||
| Altman-Z | 5.4 |
F-Score7
WACC8.65%
ROIC/WACC2.21
Cap/Depr(3y)94.48%
Cap/Depr(5y)73.42%
Cap/Sales(3y)1.62%
Cap/Sales(5y)1.34%
Profit Quality(3y)94.3%
Profit Quality(5y)151.44%
High Growth Momentum
Growth
EPS 1Y (TTM)49.06%
EPS 3Y44.1%
EPS 5Y48.11%
EPS Q2Q%52.75%
EPS Next Y41.57%
EPS Next 2Y29.94%
EPS Next 3Y26.3%
EPS Next 5Y30.31%
Revenue 1Y (TTM)20.52%
Revenue growth 3Y19.63%
Revenue growth 5Y10.38%
Sales Q2Q%20.97%
Revenue Next Year19.48%
Revenue Next 2Y18.29%
Revenue Next 3Y18.02%
Revenue Next 5Y18.86%
EBIT growth 1Y40.43%
EBIT growth 3Y48.65%
EBIT growth 5Y42.42%
EBIT Next Year45.93%
EBIT Next 3Y22.4%
EBIT Next 5Y28.45%
FCF growth 1Y59.55%
FCF growth 3Y20.17%
FCF growth 5Y2.76%
OCF growth 1Y45.13%
OCF growth 3Y27.84%
OCF growth 5Y6.55%